Ameriprise Financial Q2 2026 Earnings Call - AI-Driven Productivity and 55% ROE Outpace Industry Recruiting Arms Race

Operator: Welcome to the second quarter 2026 earnings call. My name is Rebecca, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press star one on your touch tone phone. As a reminder, the conference is being recorded. I will now turn the call over to Stephanie Rabe. Stephanie, you may begin.

Stephanie Rabe, Investor Relations Officer, Ameriprise Financial: Welcome to Ameriprise Financial’s second quarter earnings call. On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we’d be happy to take your questions. Turning to our earnings presentation materials that are available on our website, on slide two you will see a discussion of forward-looking statements. Specifically during the call you’ll hear references to various non-GAAP financial measures, which we believe provide insight into our company’s operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today’s materials and on our website at ir.ameriprise.com. Some statements that we make on this call may be forward-looking, reflecting management’s expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today’s date and involve a number of risks and uncertainties.

A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our second quarter 2026 earnings release, our 2025 annual report to shareholders, and our 2025 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On slide three, you see our GAAP financial results at the top of the page for the second quarter. Below that, you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results. With that, I’ll turn it over to Jim.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Good morning, thanks for joining our earnings call. Ameriprise delivered another great quarter thanks to the strength of our team and the firm, our complementary businesses, and the way we engage clients. We’re performing well in a positive but dynamic market environment. That includes the impact of rates, inflation, and geopolitical volatility more broadly. We’re all seeing AI in the headlines a lot more these days. Markets move, rates change, technology is always evolving. The need for our trusted advice, strong solutions, and service is only increasing in a world that is getting more complex, that’s why I feel so good about the business. As you saw, our financial performance continues to be excellent. Revenues grew 13% to nearly $5 billion, driven by strong asset growth and client advisor engagement.

We’re delivering that level of revenue with a nice mix of fee, transaction, and spread-based business. Adjusted operating earnings were up 14% to $1 billion. A continuation of our consistently strong performance as we maintain attractive margins and continue to invest in new product solutions, technology, and service. EPS was up strongly, increasing 22% to $11.07 as we consistently demonstrate strong operating earnings growth and exceptional return to shareholders that is consistently differentiated across financial services. Ameriprise ROE is another powerful advantage. Our return on equity remains best in class at 55%, up from 51.5% a year ago. We also hit a new milestone in assets under management and administration advisements, which grew to $1.8 trillion, a 14% increase. What you see in our results is the benefit of the way Ameriprise is built.

We consistently deliver strong results, invest strategically, while building a client-centric business that performs very well over time. Speaking of client-centric, the Ameriprise client advisor value proposition continues to be a real differentiator. We consistently earn excellent client satisfaction of 4.9 out of five, along with meaningful external recognition. Investors want help making decisions with confidence, and that’s what our advisors excel at every day. Our experience drives deeper client relationships and higher advisor productivity over time. These fundamentals matter, and they help drive our strong metrics in the quarter. Total client assets increased 15% to $1.2 trillion, driven by market appreciation and cumulative net inflows. Our organic flows continue to be good, understanding that overall flows in the quarter were impacted by higher seasonal tax payments as well as advisor transitions in the quarter, including Comerica.

Wrap assets reached a new record, up 19% to $732 billion, reflecting market appreciation, strong client engagement, and the value of our advice experience. The launch of our Signature Wealth Unified Managed Account has been our fastest-growing platform launch, and we continue to add capabilities, including SMAs. Transactional activity also increased, up 13%, which is excellent. We invest significantly in industry-leading technology and support to help our advisors succeed. Ameriprise advisor productivity continues to increase nicely and reached a new record, up 12% to $1.2 million, supported by our excellent client experience and advisor partnership. The bank represents another growth opportunity. Assets now exceed $25 billion, up 6%. Lending growth was very strong, up 61% year-over-year, driven by pledge and mortgages. With the introduction of HELOCs and checking accounts, we’re giving advisors more ways to serve client needs and bring assets to the firm.

We’ve seen a good response to our recent bank and certificate promotions. We know from our early results that practices using our banking solutions manage nearly 10% more assets. In recruiting, we’re bringing in good, experienced advisors, with another 79 joining during the quarter. We’re attracting advisors who want to deliver a strong advice-based experience to be part of our terrific culture and grow. Our excellent technology and J.D. Power award-winning service is a big part of the draw. Many of the advisors who join us feel underserved elsewhere and were frustrated with their tech, service, and responsiveness. At Ameriprise, they see an integrated platform built around the way they want to work and serve clients. We’re selected about who we bring in. That discipline matters. It supports stronger long-term productivity and cultural alignment and a more attractive economic outcome over time.

In regard to our AFIG institutional business, we’re on target to onboard Huntington Bank, which will bring in good assets beginning in the latter part of the year. Their advisors are excited to join us, and we’re also adding other institutions along the way. Advisor productivity is at a new record, and we’re focused on continuing our journey. Ameriprise invests significantly every year to help drive our advisors’ success with a clear focus on client engagement, advisor growth, and operating efficiency. We have a very strong technology platform in place that is seamless, secure, and has excellent availability and scalability essential during volatile markets and environments. We know that rapid advances in AI are reshaping expectations for what a premium client advisor experience should be.

With regard to AI, we continue to advance our efforts here, building on years of investment and innovation to help advisors grow, operate more efficiently, and deliver more personalized client advice. We anticipated these shifts and invested accordingly, building an interconnected technology ecosystem that brings together data, systems, and automation. That foundation allows us to innovate faster and bring new capabilities to advisors in ways that fit seamlessly into how they work. Our AI is providing many benefits to advisors that include accelerating practice growth using AI insights that identify growth opportunities and strengthen client relationships. The initial results show that advisors using the firm’s insights capabilities are seeing a nice increase in client engagement and productivity. We’re also helping advisors operate more efficiently to simplify everyday tasks, streamline workflows, and administrative tasks so advisors have more time to serve clients, grow their businesses, and deliver advice.

For example, on average, e-meeting automation saves advisors 10 to 20 hours per week. Meeting summarization helps give back five to 10 hours per week, Copilot Premium saves another two and a half hours per week. Practices using these three solutions can go on more than 30 hours per week in productivity saves. We’re embedding AI across the advisor experience to help advisors reduce friction, scale their practices, and deliver more personalized advice while keeping relationships at the center of everything we do. Our efforts are being recognized. Ameriprise once again earned the Bank Insurance & Securities Association Technology and Innovation Award for 2026. Within wealth management, we’re also seeing good momentum in the Retirement & Protection Solutions business. Sales were strong again, up 20% in the quarter, led by structured products, VUL, and variable annuities without living benefit riders.

We continue to see good demand for solutions that address our clients’ income and protection needs. The team is disciplined about having the right products to generate good client benefits and consistently earns good profitable returns for us. Our books are high quality, and they generate good free cash flow. Our margins and returns are also excellent. It’s another example of the earnings diversity and free cash flow generation across Ameriprise. We take the same thoughtful approach in asset management, where the team is executing well and focused on driving strong performance, profitable flows, and enhanced efficiency. Assets under management and advisement increased 10% year-over-year to $759 billion. Investment performance remains a key strength. 69% of our funds are above the median for one year, 75% of funds above the median for three and five-year periods, and across a 10-year period, that increases to 87%.

We also have 97 Columbia Threadneedle funds globally, earning four or five-star ratings from Morningstar. In terms of total flows, total net outflows improved to $6.5 billion, driven by higher gross sales in both North America and EMEA. From North America retail, our equity flow rate is ahead of active peers. Although we’re still a bit behind our peers in flow rate and fixed income, recognizing we have good products given our strong performance, including in taxable bond. We’re gaining traction in active ETFs as we continue to build out our product line. In fact, last week, we launched two new active premium income ETF strategies. Our SMAs and models continue to gain good traction and growth, where we’re a top 10 provider. Gross and net sales are up across a number of key partners and channels, including Ameriprise.

I also mentioned that a strong contributor to the increase of gross sales at Columbia Threadneedle is coming from our Signature Wealth Program. Another real highlight is Seligman. We have strong asset growth and flows across their mutual fund strategies, as well as technology and healthcare hedge funds. In addition, we’re also seeing nice growth in our EMEA real estate portfolios as we further build out the real estate business. EMEA is also showing improvement in net flows with an increase in gross sales, though the environment across Europe has been a bit more volatile based on impacts of geopolitical events. We’ve also recently launched three active ETFs in the EMEA region. In institutional, we’re in outflows in the quarter, but our one not funded pipeline is in solid shape, including traction in Asia Pacific.

In terms of transformation in asset management, the completion of our back office is on track to be finalized at the end of the third quarter, which is a real positive that will bring further efficiency and savings. We continue to invest across the asset management business in new products, AI, and other technology enhancements as we continue to manage expenses well. In fact, this applies across the firm. We remain focused on transformation for growth and identifying opportunities where we can invest, simplify, and improve efficiency. That helps us deliver strong margins in a very competitive industry. Stepping back, Ameriprise is in an excellent position. What sets Ameriprise apart is the combination of everything we offer, backed by our highly talented and dedicated team. We have a business that generates one of the highest ROEs, returns that you can see and expect on an ongoing basis.

Our firm-wide margin is excellent. We’re always investing in capabilities that make the firm more competitive over time and build long-term value. Ameriprise is well-positioned to navigate a changing environment and do well. We continue to earn important recognition in the marketplace. In 2026, we have been named one of America’s Most Innovative Companies from Fortune, Newsweek’s Most Trustworthy Companies in America, the Forbes Global 2000 list, and America’s Best Companies by TIME. Why do I mention recognition? It’s because of the type of business that we have and the way we work with clients. Reputation is everything in this business, and ours has stood the test of time. With that, I’ll ask Walt to provide additional color on our financials, and then we’ll take your questions. Walter.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Thank you, Jim. Ameriprise continued to deliver strong financial results in the quarter, with adjusted operating earnings per share up 22% to $11.07. These results reflect the strength of our diversified earnings profile and the operating leverage embedded in our business, as well as the return from the significant investments we continue to make. Our ability to generate attractive growth and margins across cycles underscores the durability of our platform and the discipline we bring to execution. Total assets under management, administration, and advisement increased 14% to $1.8 trillion, which, coupled with strong client engagement, drove a 13% increase in revenues to $4.9 billion. General and administrative expenses increased 5% to $982 million, driven by volume-related expenses, continued investment for growth, and higher compensation expense in our Seligman technology strategy team from asset growth and performance.

Adjusted operating earnings increased 14%. Our pre-tax adjusted operating margin remained strong at 27%. In the quarter, we returned 91% of operating earnings to shareholders through share repurchases and dividends, including opportunistically repurchasing 1.7 million shares at an average price of $459. Our balance sheet remains exceptionally strong, with $2.1 billion of excess capital and $2.8 billion of holding company available liquidity. We are positioned well whether the environment remains risk on or we see a pivot to risk off. Our diversified model enables us to continue creating value for clients, advisors, and shareholders. Let’s turn to wealth management financials on slide six. Adjusted operating net revenues increased 16% to $3.2 billion, driven by asset growth and transactional activity growth across our solution-driven model. Adjusted operating expenses in the quarter increased 16%, with distribution expenses up 18%.

I will note that advisor compensation within distribution expenses increased in line with revenues advisors generate. Consistent with our expectations, G&A expenses increased 6%, primarily driven by volume and growth-related expenses, including bank expansion, AI transformation, and automation initiatives. Moreover, these investments will further enhance the client and advisor experience, helping to ensure that Ameriprise remains a preferred destination for both advisors and clients. For the full year, we expect general and administrative expenses to increase in the mid-single-digit range. Pre-tax adjusted operating earnings increased 16% to $939 million, with continued strong contribution from both core and cash earnings. Our operating results highlight the strength of our underlying operating performance. Our core earnings grew in the low 30% range, benefiting from higher client assets and advisory fees, as well as strong transactional activity levels.

The strong core earnings that we generate is unique relative to other wealth managers and demonstrates our focus on balancing growth and sustainable profitability across all aspects of our business model. We have clearly demonstrated continued excellent and consistent financial results despite some of the slower quarters of flows, given we are competing in a highly irrational environment and the impact of Comerica, as well as the elevated tax impacts. While our peers are more heavily reliant on cash earnings, we believe we are in a stronger position given our balanced earnings mix. Bank earnings grew in the low single-digit % range in the quarter, consistent with our expectations, while certificate earnings declined given the shift in client preferences to other products on our platform. Cash earnings were essentially flat from a year ago.

We continue to take actions to build the bank portfolio in a way that supports a strong earnings contribution going forward. The overall bank has a yield of 4.7% with a 4.2-year duration. The investment portfolio is now only 6% floating-rate securities. In the quarter, new purchases at the bank were $1.1 billion at a yield of 5.2% with a 4.5-year duration. Last, our aggregate margins remain excellent at 29% as we managed expenses well relative to our revenues with a significant contribution from our core business. Let’s turn to slide seven. Advice & Wealth Management generated solid asset growth in the quarter. Total client assets grew 15%, or $164 billion, to $1.2 trillion, and wrap assets increased 19%, or $116 billion, to $732 billion, driven by solid organic growth, strong advisor productivity, and equity market appreciation.

These results reflect our ongoing investment to enhance and automate advisor workflows, as well as develop insights to meet client needs. This allows advisors to spend less time on administrative tasks and more time cultivating client relationships. Client flows were $3.1 billion, and wrap flows were $6.9 billion, reflecting a substantial acceleration of Comerica terminations, exacerbated by the elevated tax payments in the quarter. On a normalized basis, our flows improved significantly sequentially. While our flows are below our normal historic range, they are within our expectations in light of the extremely aggressive recruiting environment, which is impacting inorganic activity. Building off our stable organic growth trends, we have selectively adjusted our programs to grow inorganically net new assets that generate profitability in both a risk on or risk off environment to improve our trajectory going forward.

In the quarter, we added 79 experienced advisors, a testament to the continued strength of our advisor value proposition. Saying that, many of the recruiting deals we are seeing today in this perceived risk-on environment exceed what we believe is a balanced risk-return approach, given the long cash paybacks and the marginal profitability benefits over the extended life of these arrangements. We will continue to evaluate the facts and circumstances to assess the trade-offs between sustained profitability versus flows and associated risk. This approach will ensure decisions are driving sustained shareholder value creation. As we look ahead, it should be noted that outflows relating to Comerica will culminate with the completion of the contract and conversion in September. The addition of Huntington Bank is anticipated in the fourth quarter and will bring approximately 260 advisors and $28 billion of client assets onto our platform.

This will more than offset the impact of Comerica. While the assets will move to our platform in the fourth quarter and in early 2027, we will benefit from the economics of the full book beginning in the fourth quarter. We continue to actively engage additional financial institutions in partnership discussions and have the capacity to grow this platform. Separately, we are continuing to invest in our advisor succession strategies for both internal and external advisors, including expanding and leveraging Ameriprise Personal Wealth Group, our centralized advisor group, as a potential succession option. Turning to cash, our total client cash of $84 billion was down 2% year-over-year. Bank assets increased 6% year-over-year to $25.5 billion, with the bank representing an increasing source of earnings going forward.

Cash balances were stable at $28.8 billion compared to $29.4 billion in the prior quarter, which is consistent with the seasonal tax pattern we would expect to see. Certificate balances declined to $7.4 billion given the current rate environment and client preferences. We continue to have elevated cash balances in the third-party money market funds at $46.6 billion. This remains an important opportunity when rates decline to see these cash balances deployed into other products on the platform. Let’s turn to slide eight. Advice & Wealth Management generated solid productivity growth. Adjusted operating net revenues increased 16% to $3.2 billion. The core wealth business is performing well given the value of our planning model and the multiple touch points we have with clients to meet their needs holistically. Our fee-based and transactional revenues remain quite strong, increasing 18%, benefiting from growth in client assets and higher activity levels.

Transaction activity remains strong, increasing 13% compared to the prior year. This is primarily from increased sales in annuity products and brokerage transactions. I will note that our bank revenues increased in the mid-single-digit percentage range from business growth, including the expansion of lending products, while revenues from cash sweep and certificates declined, particularly as clients repositioned from term products into other offerings on our platform. Our advisor productivity continues to grow, reaching a new high of $1.2 million, up 12% year-over-year, driven by strong growth in wrap assets and related fees, as well as enhancements to advisor efficiency from the integrated tools, technology, and support we provide. We have demonstrated sustained advisor productivity growth of 10% annually over the past five years. Turning to asset management on slide nine. Financial results were strong in the quarter. Pre-tax adjusted operating earnings increased 23% to $274 million.

Results reflected asset growth, excellent growth and performance in Seligman, and the positive impact from transformation initiatives. Total assets under management advisement increased to $759 billion, up 10% year-over-year from higher ending market levels. As Jim mentioned, net outflows improved in the quarter, most notably with strong and improved performance in our U.S. intermediary channel. Revenues increased 14% to $947 million, and the underlying fee rate remained stable at approximately 47 basis points. Expenses increased 11% in total. In the quarter, general and administrative expenses were up 9%, driven by higher compensation expense in our Seligman technology strategy team from AUM growth and performance, volume-related expenses, and unfavorable foreign exchange impact. For the full year, we expect general and administrative expenses to be flat, excluding Seligman and other performance fee compensation.

Margin reached 43% in the quarter, which is above last year of 39% and our target range of 35%-39%. Let’s turn to slide 10. Retirement & Protection Solutions continued to deliver strong earnings and free cash flow generation, reflecting the high quality of the business that we built over a long period of time. Adjusted operating revenues increased 4% to $975 million. Pre-tax adjusted operating earnings were $202 million, consistent with our target range over time. Results are lower than last year, driven by continued variable annuity net outflows, as well as higher distribution expenses associated with higher sales. Profitability of this business remains excellent at a 21% margin. Turning to the balance sheet on slide 11.

Balance sheet fundamentals and free cash flow generation remain strong, which is core to our ability to invest for growth on a sustainable basis while also continuing to return capital to shareholders. Our return on equity is best in class at 55%. We have an excellent excess capital position of $2.1 billion. We have $2.8 billion of available liquidity at the holding company. Our assets and liabilities are well-matched, and our investment portfolio is diversified and high quality. Our disciplined capital return is a key element of our ability to consistently generate strong long-term shareholder value. In the quarter, we returned $932 million of capital to shareholders, which was 91% of operating earnings. We have increased capital return by 25% in the first half of 2026 to $1.9 billion.

This included repurchasing 3.3 million shares at an average price of $467, compared to 2.3 million shares at an average price of $507 in the first half of 2025, 43% more shares. These actions are a demonstration of the confidence we have in our continued free cash flow generation and commitment to return capital to shareholders. As we go through 2026, our strong foundation, coupled with our ERM capabilities and decisioning framework, position us well to continue investing for growth in a targeted way and return capital to shareholders at a differentiated pace. In summary, on slide 12, Ameriprise delivered solid results in the second quarter, consistent with our longer-term trend. Over the last 12 months, revenues grew 10%, adjusted EPS increased 15%, return on equity grew 260 basis points, and we returned $3.8 billion of capital to shareholders.

We had similar growth trends over the past five years, with 9% compounded annual revenue growth, 17% compounded annual EPS growth, return on equity improving 10 percentage points, and we returned $14 billion of capital to shareholders. These trends are consistent over the long term as well. In closing, we have an excellent foundation and capacity moving forward that enables consistent and sustained profitable growth. With that, we will take your questions.

Operator: Thank you. We will now begin the question and answer session. If you have a question, please press star one on your touch tone phone. If you wish to be removed from the queue, please press star one again. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star one on your touch tone phone. Your first question comes from Brennan Hawken with BMO Capital Markets. Please go ahead.

Brennan Hawken, Analyst, BMO Capital Markets: Good morning. Thanks for taking my questions. Comerica advisers were expected to be a headwind this quarter, and you flagged that in your prepared remarks. Can you maybe help us size that magnitude that you saw and give us an update on what we should expect in the third quarter when they are off-boarded, as far as the total impact? I think you gave the HBAN expected benefit, but it would be helpful to understand where Comerica stands today when we refine the forecast. Thanks.

Walter Berman, Chief Financial Officer, Ameriprise Financial: As we indicated, at the end of the third quarter, it will be $19 billion approximately exiting. We really have not, based on the client disclosed element, but it did accelerate significantly in the second quarter versus the first quarter. It impacted basically our inorganic activity. We really don’t get into disclosing the amounts based on a client situation. You will see $19 billion in total be out by the end of the third quarter.

Brennan Hawken, Analyst, BMO Capital Markets: Even though it was a headwind, it wasn’t enough to lower the size of the total amount that’s going out in the third quarter?

Walter Berman, Chief Financial Officer, Ameriprise Financial: Of course. Yes, it would. Of course, it’s happening. As advisers are leaving, we saw results in the first quarter. We saw that result significantly increase in the second quarter, the rest will go out in the third quarter.

Brennan Hawken, Analyst, BMO Capital Markets: Right. I’m just trying to think about how much is left, right? Is it possible to get an update versus that, I think it was 18 and a half before-

Walter Berman, Chief Financial Officer, Ameriprise Financial: Well, that’s the part-

Brennan Hawken, Analyst, BMO Capital Markets: You know?

Walter Berman, Chief Financial Officer, Ameriprise Financial: No, I understand. That’s what I’m saying. It’s again, divulging what’s happening at a third-party client that we have. By giving what’s left is basically saying what’s leaving, and we’ve chosen not to do that.

Brennan Hawken, Analyst, BMO Capital Markets: Okay. Fair enough. Thinking about recruiting, it sounds like the recruiting market remains non-economic, as you’ve indicated in the past. Are you seeing any early signs of rationality returning to the market in any way? What are the sort of mile markers that you’re watching when we think about that?

Walter Berman, Chief Financial Officer, Ameriprise Financial: I think what we see is still some of the deals that we’re seeing, I mean, the paybacks are as high as eight years on a cash basis, which is crazy, because some of them have gotten really aggressive. Even advisers are looking at it knowing that someone’s going to pull the wool out from what they get and how it’s going to materialize. I would say we find that we are attracting people because when they come to us, when they join, or even when they look at what we have, the service, the technology, the support, they actually say it’s not very good from where they are. I know there’s a lot of promises and a lot of statements out there, but the reality of the people joining us are very clear about what it is.

I just spoke to a recruit and said their technology is five years behind what ours is. Another one said the lack of responsiveness and service. There’s a whole bunch of reasons. I think optically, people are looking at checks, but when you look and take into account the productivity growth, the support, the servicing, how they can operate, the economics in the end come out really in our favor. Having said that, it’s a discussion you really have to have for people to kick the tires in the right way. The promises out there with what’s up front is probably different than the reality. What we see is hopefully over time, people will understand that better. Maybe as the market changes a bit, there might be more pressure there.

In our case, we feel very good about what we do and how we do it, That’s why we continue to generate very good profit and earnings and growth.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: across the whole course. Optically, I know people like to see NAA from this type of activity, but I think you’ve got to look through what the benefits truly are and whether that changes in different market environments. That’s the way we’re thinking of it, and we feel very good about it. I clearly would say that our service, our support, our technology, our capabilities, the leadership we provide, the training, is what differentiates us.

Brennan Hawken, Analyst, BMO Capital Markets: Great. Thanks for taking my questions.

Operator: Your next question comes from Craig Siegenthaler with Bank of America. Please go ahead.

Craig Siegenthaler, Analyst, Bank of America: Good morning, Jim, Walter. Hope everyone’s doing well. Our question is on the insurance side. What was the level of statutory earnings and dividends from the RiverSource life insurance entities in 2Q 2026? Because I’m curious how it compared to the $202 million of Retirement & Protection Solutions pre-tax earnings in the quarter, given that you mentioned there was a sales acceleration. Just one related one, so I’ll just ask it now, too. You bought back $774 million of stock in 2Q. That was up 35% year-over-year. Is that sustainable?

Walter Berman, Chief Financial Officer, Ameriprise Financial: Okay. On the statutory earnings, I don’t have the exact number on that, but I will tell you statutory earnings will support what our expected dividends coming from the RPS, so there’ll be no denigration of that cash flow. We’ll get you that number. From the standpoint of supporting, yes, as we said, we certainly have the excess capital and the free cash flow generation, and we will stay in that 85-90 range, and as we were in this quarter, be optimistic as we see opportunities to balance that shareholder value. Yes, certainly is doable from that standpoint.

Craig Siegenthaler, Analyst, Bank of America: Thank you, Walter. That’s it for me.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Okay.

Operator: Your next question comes from Crispin Love with Piper Sandler. Please go ahead.

Crispin Love, Analyst, Piper Sandler: Great. Thank you. Appreciate you taking my questions. Just first on margins in AWM and asset management, I think it was nearly 29% in AWM, 43% or so in asset management. Can you just discuss kind of thoughts on the outlook here? Do you believe that your investments in tech and AI could drive those even higher? Maybe more so looking on the AWM side there to just outlook. Also just balancing the competitive landscape and some headwinds there. Just curious on the big picture there. Thanks.

Walter Berman, Chief Financial Officer, Ameriprise Financial: As looking at the margin in AWM, yes, that is certainly sustainable from that standpoint. Obviously, there is a component of interest in there. Looking at the bank with net insurance income generation, we feel very good about that and its positive nature as we go through 2026. Certainly, as we’re seeing in core, we are certainly generating with good revenue growth and very focused expense management with investing in the business. Yes, that is certainly sustainable from that standpoint. Again, markets play a role in that. Then you mentioned, I think, asset management, and that is obviously we’re above our range, but that range is driven by transformation and the market, and certainly as this continues, we believe that will be sustainable also. Again, market is a factor.

Crispin Love, Analyst, Piper Sandler: Great. Thank you. Then just one follow-up from me on AI adoption across the firm, advisor productivity, that metric set a new record high for you guys. When you look at that metric, do you think there is significant runway there in improving productivity through tech and AI kind of over the next several quarters and years? Or is there some type of tipping point where that may level out? Just curious on how you’re looking at, say, the recent history, how that’s grown, and then as you look out over time, where can it accelerate or is it going to flatten out? Thank you.

Walter Berman, Chief Financial Officer, Ameriprise Financial: If I understand your question, I think you’re saying the contribution AI is making towards our margin. Is that it? Because you broke up there for a minute.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah, we didn’t understand what you-

Walter Berman, Chief Financial Officer, Ameriprise Financial: Is that the essence of your question?

Crispin Love, Analyst, Piper Sandler: More so on how it’s impacting advisor productivity-

Walter Berman, Chief Financial Officer, Ameriprise Financial: Okay

Crispin Love, Analyst, Piper Sandler: If advisor productivity can continue kind of accelerating.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah. As we introduce these various tools and capabilities, as an example, our E&E capability and putting together for clients how they can operate with their engagement with clients and their meetings, et cetera, advisors uptake that. We have about 6,000 advisors utilizing that already, and they’re seeing really good improvements in their time, and their activities, and the engagement, and the conversations they could have. As we introduce these tools and they embed them in their practice, we are seeing those types of things of freeing up time and activity and improving. We’ve introduced even more informed insights. When the advisors use those insights, we’ve seen better engagement and better productivity increase. Now, of course, advisors have to embed this in the way they operate, it’s always a sort of an introduction and a learning curve.

As they take them on and change how they process, we are definitely seeing those nice improvements. I think that it’s going to really continue because it’s really an adoption curve that occurs, and we continue to introduce more and more. Some of that’s already embedded in the tools, but at the same time, advisors have to more utilize the capability more fully, and that’s what they’re uptaking. There’s always that learning curve across 10,000 advisors. More and more are doing it, like e-meeting summarizations. They’re actually uptaking that nice, and they’re seeing nice benefits from it. Yes, I think that will be something that will add to the productivity of freeing up their time and energy, and hopefully engaging clients even more deeply.

Crispin Love, Analyst, Piper Sandler: Great. Thank you. Yeah. That’s a great point on the advisor adoption of AI. Thank you. I appreciate you taking my questions.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: You’re welcome.

Operator: Your next question comes from Wilma Burdis with Raymond James. Please go ahead.

Wilma Burdis, Analyst, Raymond James: Hey, good morning. Wrap flows looked robust, especially given the accelerated roll-off of Comerica in 2Q 2026 and the environment. The total client flows were a bit softer. Can you just talk about the drivers? Was it related to something with Comerica or something else? Thanks.

Walter Berman, Chief Financial Officer, Ameriprise Financial: You’re talking about the client flows. Yes. As I indicated, certainly we are seeing acceleration in Comerica. It really did accelerate versus the first quarter, and that is impacting that. Plus, as we indicated, the tax situation did also. As I indicated, we feel very good about our organic flows. The inorganic is being impacted, as we indicated, by the aggressive nature that is taking place, both on the recruitment and on the retention. That is the factor. Clearly this quarter was impacted by that acceleration of Comerica.

Wilma Burdis, Analyst, Raymond James: Okay. Thank you. What are Ameriprise’s opportunities to promote Columbia Threadneedle within the A&WM book? Are there ways to incentivize clients to choose Columbia funds, such as lower fees or other ways to incentivize those flows into the product there? Thanks.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah. No, we don’t. Every product we put from all investment firms is on a consistent level of compensation and relationship to that. Different products have different fee levels based on their asset expense fees and other things. ETFs are lower than active funds and various things like that, and some are a little different, just like USC and iShares versus another provider. What I would say is that Columbia has a good opportunity, and we see a nice increase in the sales activity in Columbia as they introduce their SMAs, their ETFs. We also see a nice take-up in the Signature Wealth platform, where they have the ability to actually work through the advisory part of that program very well, as other providers have. We have seen a nice pickup, and we think that will continue.

Wilma Burdis, Analyst, Raymond James: Okay. Thank you.

Operator: Your next question comes from Tom Gallagher with Evercore ISI. Please go ahead.

Tom Gallagher, Analyst, Evercore ISI: Good morning. If I look at the $6.9 billion of wrap flows in the quarter, that does include the Comerica-related outflows, or is that excluding the Comerica-related outflows?

Walter Berman, Chief Financial Officer, Ameriprise Financial: Tom, that was impacted by also the outflows from Comerica.

Tom Gallagher, Analyst, Evercore ISI: Got you. Walter, to get to a core number that we can expect after this outboarding is done, we should be adding something back because you’re seeing it. You said it was accelerated, so I’ll just pick a number out of the air. If it’s $4 billion or $5 billion, that’s the number that you would expect to be more trendable when we think about how this looks after 3Q. Is that a reasonable way to think about it?

Walter Berman, Chief Financial Officer, Ameriprise Financial: Well, not to give a number, because I said, yes, it is accelerated. I’m not using your number, but it did accelerate significantly. As we look at it, yes, in this environment, as we indicated, what we historically have seen is really just not in the best interest of shareholders to pursue a number like that to try and get growth that is not profitable. The number will be less in this environment. Clearly it makes sense from a shareholder standpoint, and we are attracting good flows.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah. The only thing I would say, and maybe I was a little confused to what you said, wrap business is only one component of the client flow in Comerica. There is other flow activity, Comerica annuities, brokerage, other activities. It’s not a one for one between wrap and client flows. No. I’m sorry.

Tom Gallagher, Analyst, Evercore ISI: Got you. That would be impacting the total client flows-

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah

Tom Gallagher, Analyst, Evercore ISI: probably more so.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yes.

Tom Gallagher, Analyst, Evercore ISI: Just wrap.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: The total of the $19 billion that will come out by the end of September completely, that’s total client flows. Wrap flows is a component of that within the 19. I don’t know the exact percentage per se, but it’s less than, definitely less than the 19.

Walter Berman, Chief Financial Officer, Ameriprise Financial: It was impacted.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: The only reason we’re not mentioning what it is, only because it’s a client, we don’t. At the end, that’s all I would say is the complete amount will be out by the end of the third quarter. Offsetting that, as we said, is Huntington will be coming in in a big way, and that will be in the fourth quarter, in the beginning of first quarter. We also are winning other AFIG type of deals as well. We feel like our pipeline and what will offset that will be very good. It’s unfortunate because advisors at Comerica really would like to stay with us because they love what we provided and their clients do. I think it’s not because we lost it’s because the decision made through an acquisition the people made.

Tom Gallagher, Analyst, Evercore ISI: Got you. That’s helpful, guys. Just for my follow-up, just getting back to your comment on extremely aggressive recruiting activity in the market for advisors, how would you expect that to manifest itself on your business when you think about your 29% margin this quarter? Do you still think you can hold the line, considering it sounds like spreads are stable on the customer cash, and what that impact might be on revenue and distribution expenses from the competition? And then I guess you also have Huntington getting onboarded. There’s a bunch of moving pieces here, but how do you feel about the 29% margin in light of all of those factors?

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: We feel good about it. Remember, we’re generating this on a consistent basis across our entire business. I would probably ask you to look over the years about the continuation of that and the solid. You’re always going to get some impacts based on environment and things such as that, and market, and behavior that’s occurring out there. What I fail to understand is how people don’t look the totality of it rather than just an NAA. NAA might be good if it truly translates into real profitability on a consistent basis with strong margins. If it doesn’t, then what are you paying for? It’s like the eyeballs back on the internet back in 2000, what really survives? You have some of that occurring today with AI, what will happen in the end?

Right now, we’re so enamored with people paying up because they get some totality growth that may translate into profitability truly in the end. I don’t know whether it will or not fully, but what we look at is we make those decisions in informed basis. We definitely want people to join. We definitely give good, appropriate compensation packages. We also know the value that we truly provide and what that generates for an advisor over time. If you’re increasing advisor productivity year in and year out, and even in the end when they’re looking for succession, that equity has built up even more strongly and more of higher value. Then you can sell that because of the system we have at a premium to what you would be selling outside in one of the other networks.

Those things add tremendous value that an advisor understands or needs to understand. Right now, people are taking some checks, but it doesn’t mean it’s going to translate to even them being going to benefit really better in the end. Those are the things that we know are important, and when we’re truly able to speak to people that way, they understand it, and that’s why we attract them, and that’s why we have a good network with our advisors here. Again, people can always think about what the short term is, and there’s a lot of short-termism today.

Tom Gallagher, Analyst, Evercore ISI: Got you. Thanks for that, Jim.

Operator: Your next question comes from Ryan Kruger with KBW. Please go ahead.

Ryan Kruger, Analyst, KBW: Hey, thanks. Good morning. Walter, in the prepared remarks, you mentioned selectively changing advisor programs to generate, I think, better organic net new assets in both risk on and risk off environments. Can you expand on what you were referring to there and any impact that you expect going forward?

Walter Berman, Chief Financial Officer, Ameriprise Financial: As I indicated, we have a group of programs that deal with various advisor needs, both as it relates to succession and growth in those programs. We also have an established program dealing on a remote basis with our PWG activity, where we have been growing that. There is additional activities from that standpoint in our organic capabilities, but certainly more profitable and certainly for retention purposes and for meeting their objective needs. We offer a full spectrum of capabilities that the advisor in their cycles to allow them to achieve their objectives. As those are set programs with them and those have been rolled out, certainly we are expanding on, like I said, our remote advisor capability. That is paying good dividends for us.

Ryan Kruger, Analyst, KBW: Got it. Just a question on the recruiting pipeline. You have talked about irrational competition for a while now. Last quarter, I think despite that, you were talking about an improvement in the pipeline as the quarter progressed. I guess how has that trended since then, I guess, over the last few months?

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: The pipeline you saw from the first to the second quarter increased nicely that we recruited. The third quarter looks even stronger.

Ryan Kruger, Analyst, KBW: Okay. Thank you.

Operator: Your next question comes from Suneet Kamath with Jefferies. Please go ahead.

Suneet Kamath, Analyst, Jefferies: Great, thanks. Good morning. Just sticking with the recruiting outlook. Just based on the announcements that you made in the second quarter, we were calculating, you announced about $800 million of practice additions. If we track that just for the month of July, it’s closer to $900 million, so already surpassing 2Q. Do you think that’s a reflection of some of these changes that you’re making, or is that just the timing of when practices move?

Walter Berman, Chief Financial Officer, Ameriprise Financial: I’m not following the question. I’m sorry, Suneet. Help me with that again.

Suneet Kamath, Analyst, Jefferies: Yeah. You guys announce these practice ads every once in a while, right? We tracked those-

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yes. Absolutely. Yes

Suneet Kamath, Analyst, Jefferies: That number was $800 million in 2Q.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yes.

Suneet Kamath, Analyst, Jefferies: Now if we track it for July, it’s already $900 million, so it’s already above 2Q.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yes.

Suneet Kamath, Analyst, Jefferies: I guess my question is sort of a follow-up to Ryan’s. Is this a function of some of the compensation package changes that you’re making, or is it just random when practices decide to move? That’s what I’m getting at.

Walter Berman, Chief Financial Officer, Ameriprise Financial: No, I think it’s a combination of both from that standpoint. Certainly we have, as the value proposition people evaluate, as Jim said, but certainly as we indicated, for the right advisors and right situation, we’ll make adjustments and that’s what you’re seeing.

Suneet Kamath, Analyst, Jefferies: Okay. Just on this concept of AWM earnings mix, kind of core versus cash. I know you don’t split it out, but we’ve tried to do some math around that, and we’re getting to something like half of the earnings come from core and half of the earnings come from cash, give or take a little bit. Which, if that’s right, it sort of strikes us as pretty significantly different from some of your peers where most, if not all of the earnings comes from cash. I just wanted to pressure test that.

Walter Berman, Chief Financial Officer, Ameriprise Financial: That’s good, Jim.

Suneet Kamath, Analyst, Jefferies: those assumptions that we’re using just to make sure we’re not thinking about it incorrectly, because it seems like a pretty stark difference.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Well, certainly, you’re in the right ballpark. I would say there is more on the core.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: Yeah, it’s definitely more than half in the core.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yeah.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: It’s more like 70%.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Let’s just say it’s more in the core.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: It’s somewhere in between what you just said. How’s that?

Suneet Kamath, Analyst, Jefferies: Okay. That’s better. Any additional disclosures that you guys could give us on that would be helpful.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yeah

Suneet Kamath, Analyst, Jefferies: I think it is a real differentiation.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Yes, it is. It’s not only that, it’s also the stability where the bank is to maintain that generation of earnings. Obviously, we have a bank, so we don’t have to swap, and we keep the premium, and certainly the bank is growing in its net interest income. Yes, I think we will look at doing that because there’s certainly a big differential between the concentration we have and the concentration that exists in peers. I’ll leave it at that.

Suneet Kamath, Analyst, Jefferies: Okay. Look forward to that. Thanks.

Walter Berman, Chief Financial Officer, Ameriprise Financial: Thanks.

Jim Cracchiolo, Chairman and Chief Executive Officer, Ameriprise Financial: It’s 16.

Operator: We have no further questions at this time. This concludes today’s conference. Thank you for participating. You may now disconnect.